KARACHI: The international online food delivery company, foodpanda, is investing in third-party restaurants and supporting home-based chefs in Pakistan in a bid to expand operations beyond main cities to all over the country.
The company is confident that the burgeoning population of tech-savvy individuals will continue to propel its efforts in delivering food to a vast customer base across the existing 35 cities and newly targeted regions in Pakistan.
In an interview with The Express Tribune, Jakob Sebastian Angele, CEO of foodpanda Asia-Pacific (APAC), emphasized the significance of Pakistan in the company’s global strategy. He acknowledged a challenge in smaller cities where the density of restaurants is relatively low compared to countries like Thailand, Hong Kong, and Italy.
To address this challenge, foodpanda is actively collaborating with restaurants to facilitate their expansion. Angele highlighted various forms of support, including financial assistance, loans, partnerships, and market insights, aimed at enabling restaurants to extend their reach to different cities and neighbourhoods.
The foodpanda app currently boasts registrations from over 20,000 restaurants and food outlets throughout Pakistan. The company recognizes the consistent growth in online food orders, both within the industry and on its platform specifically, with an expected Compound Annual Growth Rate (CAGR) of around 18% in the next five years (2023-2027).
Although Angele did not disclose the specific investment amount for expanding operations, citing confidentiality, the company’s commitment to reaching breakeven by 2023 was reiterated. Foodpanda, now part of Germany-based Delivery Hero, has expanded its initiatives by collaborating with home-based female chefs through the HomeChef initiative launched in 2021. Over 10,000 home-based chefs have already registered, with success stories emerging from individuals who started with small kitchen operations and now manage substantial daily orders.
During Angele’s recent visit to Pakistan, he highlighted the company’s focus on technology-savvy customers with disposable income, viewing Pakistan as an exciting market due to its large and growing population. Despite economic challenges, foodpanda remains committed to its strategy in Pakistan, evidenced by increased compensation for its 50,000 riders in response to rising petrol prices. The company envisions substantial potential in Pakistan’s market and aims to tap into the dynamic and expanding consumer base in the country.
